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RallyCry (< 20)

Welcome to the Peep Show Economy

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July 13, 2011 – Comments (0)

Without trying to determine the undeterminable which is the motivations for government's actions,  it's very obvious that the artifical demand that the Fed is creating by pumping dollars into treasuries is having unintended consequences. Supporting a low interest rate is a non starter for lending and borrowing if no one can qualify for a loan, secure a job to make the monthly payment, or budget for a house after food, gas, and taxes.

 I'm going to refer to U.S monetary policy as the "peep show" economy. Every time the windows starts to close on economic growth, Ben Bernacke just sticks another quarter into the machine to lift the market back up. Washington wants you to focus on the sexy girl which they say is the rebounding economy. However debt, taxes, and inflation will just keep weighing the economy down. Eventually Ben needs to realize the sexy girl is really ugly, his quarters are no longer accepted, and the peep show is over.

Its time to start sacrificing to get the debt under control and the economy turned around. Its also time for Ben to go home. He's overstayed his welcome in the club.

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